User adoption is one of the biggest problems of mobile money deployments in all regions. According to the GSMA, in 2015 there were more than 37 million people performing formal Over The Counter (OTC) transactions, with 67 percent of mobile accounts remaining dormant. While many users perform OTC transactions, the usage issue still remains.
 
OTC transactions can be developed as part of a mobile money strategy for the service provider i.e. Pakistan (formal OTC), or they may be a customer response to the market conditions i.e. Bangladesh (informal OTC).  These conditionsdiffer from each country; according to Financial Inclusion Insights surveys, lack of formal ID, lack of access points and even lack of information on the benefits of wallets are the major barriers in the surveyed countries. However, there are other factors that may explain this behaviour, such as the diversity of the mass market, literacy rates, technological barriers, and the confidence in agents.
 
This paper explains a new model powered by TagPay. It highlights the role of the agent though the proximity technology NSDT, that allows the end-user to perform transactions with his own wallet under the supervision of the agent. The main key of this model is that it has a simplified user experience (similar to card payments) and it can be implemented with a familiar mass market approach (with payment over the counter or with agents, thereby increasing access and usage points).
 
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About the Author: Ana Maria Garcia is a contributing blogger. She is an economist with more than 8 years of experience in Financial Inclusion. She formerly worked at Alliance for Financial Inclusion and the Colombia Banking Association. She is currently sales manager for Latin America at Tagattitude.

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